Types Of Orders To Trade Forex

forex profit acceleratorThere are many different types of orders when trading any market and it is the same in Forex Trading I will explain a few of them here to help you understand so you can be more successful trading currencies.

Here are some of the most common types of orders to trade Forex

  • Market Order
  • Limit Order
  • Stop Order
  • Stop Loss Order
  • One Cancels Other Order (OCO)

 

First there is the Market Order if you have traded at all you know this order well it is used to either enter or exit the market immediately at the current price this is the fastest way to get in or out. When you issue a market order to sell your position (or take a new short position) you will be filled immediately at the bid price and if you want to buy with a market order you will be filled instantly at the ask price.

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The Second order I will tell you about is the Limit Order this order is used to get in and out of the market at a specified price. When you sell a pair at a predetermined price the order will be filled if the price trades at or above the specified price. Much the same if you issue a buy limit order your filled if the price trades at or below your specified price.

Third is the Stop Order you would use this order to buy or sell a pair at a predetermined price point. For example a buy stop order would be filled only if the price trades at or above the stop price. Sell stop order is the same but reverse so if you had a sell stop the price would have to trade down to the price level or below and you would be filled on the stop order.

The last orders are stop loss orders and OCO orders first a stop loss order would be set at a price that you would want out if you had a loss on your trade and would limit the loss to the price point you decide. The OCO order stands for one-cancels-other and you would have to link two or more orders together so that if one order is hit then all the other orders would be canceled.

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Practice with some of these orders and see how effective they are at entering and exiting the market with all the different Forex pairs.

 

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